You are contemplating investing in two stocks ABC and XYZ that have an expected return of 12 percent and 9 percent,respectively.If your target expected return is 10 percent,what would be the weight in ABC?
A) 50%
B) 33%
C) 67%
D) 100%

Name: You are contemplating investing in two stocks ABC and XYZ that have an expected return of 12 percent and 9 percent,respectively.If your target expected return is 10 percent,what would be the weight in ABC? A) 50% B) 33% C) 67% D) 100%
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Question

Quizplus · Accepted Answer

0.09(1-x)+12x = 0.1,X = 0.33

You Are Contemplating Investing in Two Stocks ABC and XYZ